Hard money loans refer to financing provided by non-institutional lenders. As a hard money lender in Texas, we offer fast funding at attractive interest rates. As the borrower, this means you can spread your capital into multiple projects. (Learn more here: Using Hard Money as a Valuable Tool!)
Top 3 Reasons to use Hard Money Loans
- Credit History Not a Big Issue: In the case of traditional lending, your credit history can have a huge impact a approval. With hard money, less emphasis is placed on a weak credit history. This is because a hard money lenders base loan approval on property value, borrower equity, etc. As long as you meet these criteria, you stand a good chance of your property funded.
- Faster Approvals: Without a doubt, one of the major benefits of a hard money loan is the fact that investors can secure the pre-approval within one or two days. So long as the borrower provides correct documentation that the lender has requested. Hard money lenders in Texas primarily focus on whether the asset itself has good market value and that borrower equity is at least 20%. Financing can take place in less than a week, as compared to normal loans which may take a month or even more. When inquiring about hard money loans, a key question to ask is how quickly they can fund.
- Less Requirements: When applying for a loan from a traditional financial institution, you will be expected to meet many hard-set requirements. These include income history, experience, etc. It is no secret that bank approvals can become a difficult process. It is likely that you will not be burdened with so many requirements by a hard money lender. As long as you have a high-value asset with at least 20% equity stake in it, there are good chances that you will qualify for the loan.
An added bonus of obtaining a loan from a hard money lender in Texas is that as more properties are renovated in the community, property values a slated to rise and the quality of the neighborhood improves.
Alex Boeger is an Account and Marketing Executive at Axe Lending Group. We have in house private lenders for fix and flip deals up to $500k within 17 states. We also broker loans for buy and hold, commercial cash out refi and construction loans for residential and commercial projects nationwide up to $100 million. For more information about Axe Lending Group, visit our website at www.axelendinggroup.com. firstname.lastname@example.org (281) 817-7582